Essar’s Mahan power plant achieves financial closure

Our Bureau

Mumbai, July 30 Essar Power’s Rs 4,860-crore project at Mahan in Madhya Pradesh has achieved financial closure.

With a 3:1 debt-equity ratio, it has been funded by a consortium of ICICI Bank, Power Finance Corporation, Rural Electrification Corporation and Punjab National Bank. ICICI Bank is the lead bank for the Rs 3,600-crore package.

Essar Power MP, part of Essar Power, is executing the 1,200-MW project. The company said the pithead coal-based project of two units of 600 MW was on track for completion in 2011.

Essar is executing four projects to hike its capacity from 1,200 MW to 6,000 MW by 2012 at Rs 20,000 crore. It has already tied up fuel supplies for the plan.

Mr Anshuman Ruia, Director, Essar Group, said, “We are on course to completing all our power projects as scheduled by 2012.” All clearances have been obtained, including approval for a mining plan in the coal block.

Essar Power Transmission, which is setting up the transmission facilities for power evacuation, has also received open access approval.